Early in my career, I remember sitting down with a family to help them prepare for buying a home. I asked them how their credit was, and the husband replied, “Our credit is very good. The creditors aren’t knocking on our door.”
My first instinct was to laugh with him, until I realized that he was very serious. As I look back, I understand why he would be confused. Many of us are misinformed when it comes to credit. For starters, being in “good standing” with your lenders does not always indicate that you have good credit. What’s even more surprising, having a strong credit score doesn’t readily mean that you are desirable to lenders.
Confusing? Let’s break it down.